Realtors with an agenda differing from that of their state association flocked to the State House last week, just days after the association’s annual official delegation made the same trip to lobby legislators.
Even though Realtor Day on the Hill took place a week earlier, some real estate agents flocked to the State House again last week to urge lawmakers and the governor to reject a budget amendment that would provide guidelines on how agents represent homebuyers and sellers in a real estate transaction. The measure was part of the $22.5 billion budget the House and Senate approved last Wednesday. Fred Meyer, a Cambridge real estate broker, and a bunch of other Realtors climbed the steps of Beacon Hill to voice their opposition to the initiative. They’re hoping for a line item veto from Gov. Mitt Romney. But the agency proposal, backed by the Massachusetts Association of Realtors, took a huge leap forward with the budget approval last week. “It is a serious setback,” acknowledged Meyer, who was so infuriated by the measure that he recently resigned from the MAR board of directors. Meyer and members of Real Estate Agents for Real Agency, a group he helped form last year to oppose the proposal, think the strategy of slipping an amendment into the budget was inappropriate.
A quick recap for those who haven’t been following the issue: MAR wants specific legislation or guidelines on how real estate agents work and represent consumers. Currently no such laws exist, and instead real estate brokers and agents are guided by common law and regulations. Under the proposal, designated agents would be allowed – meaning that a broker could designate an agent to represent the seller and another agent in the same company to represent the buyer in the same transaction. What typically happens in similar situations today is that the agents operate as disclosed dual agents – meaning that consumers must agree to set aside previous agreements for exclusive representation so that the agent can play a neutral role and not advocate for either party in the transaction. In addition to designated agency, under the MAR proposal agents would be able to serve as facilitators – representing neither party in a transaction but simply putting the deal together. They also would have to get consent from sellers to allow subagents – that is, any other agent besides the listing agent – to work on the seller’s behalf. “As we have previously stated, we are confident that this proposal is a positive step for licensees and consumers and sincerely hope it will continue to receive favorable response from our elected officials,” said MAR President Judy Moore.
Realtors may find out as soon as this week what Romney’s take on all this is. Meyer hasn’t lost all hope. “They [MAR] may have won a battle but they haven’t won the war yet,” he said.
Small Change
BEELINE FOR BROOKLINE: Just how many CEOs and other head honchos have homes in Brookline? The Teller doesn’t know the exact answer, but Thomas G. Stemberg, founder and chairman of Framingham-based Staples, is the most recent name to be added to that long list of influential VIPs living in the town. Stemberg recently purchased a $2.7 million mansion on Alwyngton Road in Chestnut Hill from Deborah G. Brooks. Built in 1888, the residence features seven bedrooms, four-and-half baths, eight fireplaces and a three-car garage. A special feature of the home, which was listed by Hammond Residential GMAC Real Estate, is its large entrance foyer with fireplace.
INVESTMENT ADVICE: Summers on Nantucket can be a delight and Joan L. Gulley, chief executive officer of PNC Advisors, is apparently ready to experience that firsthand. Gulley is the new owner a $4.5 million property on the island. Gulley purchased a Federal-style home at 3 Weetamo Road from Dorothy H. Lobl and the Three Weetamo Road Nominal Trust on June 9. According to assessors’ records, Dorothy Lobl and Herbert M. Lobl purchased the home back in 1992 for a mere $355,000. During her 10 years with PNC, Gulley has served in several leadership roles. As CEO of PNC Advisors, Gully “is the driver of PNC’s wealth management, institutional investment, and brokerage business units,” according to the firm’s Web site.
Weekly Statement
“The recent increase in mortgage rates has given the housing market a slight breather from the frantic pace in lending that has been prevalent over the last few years.”
Frank Nothaft, Freddie Mac’s chief economist.
